The Listed Internet Company Valuation Based On EVA

In twenty-first Century,the Internet industry has a rapid growth.Internet company make news frequently-listing on the stock market,risk investment,mergers and acquisitions,assessment of the value of Internet companies becomes more and more important.However,due to uncertain income of the internet companies,and lack of historical data and market data,there are lots of difference of enterprise value assessment between the traditional company and the internet company.The internet company will particularly care about the shareholder's value.In contrast,the general value of traditional financial indicators on accounting profit showed limits on the evaluation model.Therefore,it is more important and urgent to evaluate the company value of a scientific and reasonable way.Considering the above factors,the author tries to use the EVA evaluation model to the Internet enterprise value evaluation field.Based on the particularity of the Internet business as a logical starting point,according to the EVA valuation model,especially EVA from the definition of equity capital increase enterprise value,and focus on business growth and profitability point of the study,at the same time,the NASDAQ listed Baidu Inc.as a case to study the Internet enterprise value evaluation,and to evaluate the effect of EVA valuation model.Through comparative analysis,qualitative analysis and quantitative analysis and case analysis to verify the validity of the model by EVA to assess the value of listed companies on the Internet,the conclusion proves the validity and feasibility of EVA valuation model,and the final results are reflected and put forward the further suggestions to the enterprise value assessment.